Sub Chapter Officers and Administration
Sec. 706. Conversion
(a) The debtor may convert a case under this chapter to a case under
chapter 11, 12, or 13 of this title at any time, if the case has not
been converted under section 1112, 1208, or 1307 of this title. Any
waiver of the right to convert a case under this subsection is
(b) On request of a party in interest and after notice and a
hearing, the court may convert a case under this chapter to a case under
chapter 11 of this title at any time.
(c) The court may not convert a case under this chapter to a case
under chapter 12 or 13 of this title unless the debtor requests such
(d) Notwithstanding any other provision of this section, a case may
not be converted to a case under another chapter of this title unless
the debtor may be a debtor under such chapter.
(Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2606; Pub. L. 99-554, title II,
Sec. 257(q), Oct. 27, 1986, 100 Stat. 3115; Pub. L. 103-394, title V,
Sec. 501(d)(22), Oct. 22, 1994, 108 Stat. 4146.)
Historical and Revision Notes
Section 706(a) of the House amendment adopts a provision contained
in the Senate amendment indicating that a waiver of the right to convert
a case under section 706(a) is unenforceable. The explicit reference in
title 11 forbidding the waiver of certain rights is not intended to
imply that other rights, such as the right to file a voluntary
bankruptcy case under section 301, may be waived.
Section 706 of the House amendment adopts a similar provision
contained in H.R. 8200 as passed by the House. Competing proposals
contained in section 706(c) and section 706(d) of the Senate amendment
senate report no. 95-989
Subsection (a) of this section gives the debtor the one-time
absolute right of conversion of a liquidation case to a reorganization
or individual repayment plan case. If the case has already once been
converted from chapter 11 or 13 to chapter 7, then the debtor does not
have that right. The policy of the provision is that the debtor should
always be given the opportunity to repay his debts, and a waiver of the
right to convert a case is unenforceable.
Subsection (b) permits the court, on request of a party in interest
and after notice and a hearing, to convert the case to chapter 11 at any
time. The decision whether to convert is left in the sound discretion of
the court, based on what will most inure to the benefit of all parties
Subsection (c) is part of the prohibition against involuntary
chapter 13 cases, and prohibits the court from converting a case to
chapter 13 without the debtor's consent.
Subsection (d) reinforces section 109 by prohibiting conversion to a
chapter unless the debtor is eligible to be a debtor under that chapter.
1994--Subsec. (a). Pub. L. 103-394 substituted ``1208, or 1307'' for
``1307, or 1208''.
1986--Subsec. (a). Pub. L. 99-554, Sec. 257(q)(1), inserted
references to chapter 12 and section 1208 of this title.
Subsec. (c). Pub. L. 99-554, Sec. 257(q)(2), inserted reference to
Effective Date of 1994 Amendment
Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
applicable with respect to cases commenced under this title before Oct.
22, 1994, see section 702 of Pub. L. 103-394, set out as a note under
section 101 of this title.
Effective Date of 1986 Amendment
Amendment by Pub. L. 99-554 effective 30 days after Oct. 27, 1986,
but not applicable to cases commenced under this title before that date,
see section 302(a), (c)(1) of Pub. L. 99-554, set out as a note under
section 581 of Title 28, Judiciary and Judicial Procedure.
Section Referred to in Other Sections
This section is referred to in sections 348, 1146, 1208, 1231, 1307
of this title.